The Asset: as first thing we must choose an Asset for our Binary Option. In our example, we will choose the Amazon’s Shares because thanks to our markets analysis we predict a raise in the prices. The price of the Asset is $87.88 for share. The Binary Option Type: now we can choose the type of Binary Option that suits better our prediction. In this case, we decide for the High/Low Binary Option. The Expiry Time: in this case we are going to choose the 1 hour Expiry Time, decision based on our market analysis. Amount Invested: Sure of our prediction, we want to invest 100 EUR on this Binary Option. The Forecast or Prediction: As already said before, we will choose the “Call” Option because we think that there will be a raise in prices within the next hour in the Amazon’s Shares. Confirming the Binary Option: at this point, we only have to check that everything is okay and that we didn’t make a mistake while selecting the different features. We will know the Payout too: 80% in this case. A) The prediction was right: after 1 hour, the price of the Amazon’s Shares is greater. Let’s say $88.24. Therefore our prediction was right and we will earn the Payout: 180 EUR. B) The prediction was wrong: after 1 hour, the price of the Amazon’s Shares is lower. Let’s say $87.35. Therefore our prediction was wrong and we will take a loss: 100 EUR. Although some Brokers may offer a refund, that is around the 10-15%. Based on the golden rule: increasing profits, cutting losses